The Indian government aims to begin releasing incentives related to production-linked incentives for automobiles and auto components in the January-March quarter of the current financial year 2025. The Rs 25,938 crore Production-Linked Incentive (PLI) scheme, announced in 2021, aims to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investment in India’s automotive value chain.
The government has approved 18 companies to participate in the scheme under the Champion OEM category, while 67 companies have been approved under the Component Champion category. The scheme’s planned investment is Rs 67,690 crore, with Rs 20,715 crore invested by September 2024, and sales increment reaching Rs 10,472 crore.
PLI scheme aims to boost EVs, components and local manufacturing
The scheme has two components: a) Customer Champion incentives for battery electric & hydrogen fuel cell vehicles in all segments; and b) Component Champion incentives for hi-tech & hi-value vehicle components.
Heavy Industries Minister HD Kumaraswamy confirmed 50 per cent DVA certification and more applicants will soon manufacture automobiles in India.The Ministry’s schemes, including PLI Auto, PM EDRIVE, PLI Advanced Chemistry Cell, and Payment Security mechanism, aim to boost local manufacturing and global automotive competitiveness.
